Assignment on Financial Decisions
Added on -2020-07-22
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FINANCIAL REPORT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Fundamental factors...............................................................................................................1Qualitative factors..................................................................................................................2TASK 2............................................................................................................................................3Contribution per unit..............................................................................................................3Break-even point....................................................................................................................3Fixed cost................................................................................................................................3Variable cost per unit..............................................................................................................4CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONFinancial reports contain all the legal and authenticated information about the company.This in turn also provides information to the stakeholder related with gross annual turnover andthe various planned budgets of the company. These can benefited the investors to track thefinancial data provided by the auditors on the disclosure of the financial statements of the entity.Bu this, investors or stakeholder would become able to take corrective decisions which will befruitful for the company in building the brand image and better financial strength in the market.In this, report will shed light on the fundamental and qualitative factors that are related toaccounting as per IFRS. Besides this, it will also provide deeper insight about the manner inwhich marginal costing tools aidin decision making. TASK 1Financial report furnishes necessary information to the various stakeholders as theywould become able\to make their decision associated with an organisation (Cascino & et. al.,2014). The reports are necessary for the managers or professional heads of the entity as it helpsthem in planning the budgets and better financial changes which will enhance the productivity aswell as as profitability of the business. There can be various characteristics of the financial reportthat will help in providing the beat financial data to investors which are as follows:Fundamental factorsRelevance:Information provided in the financial report are to be very relevant and liable that can behelpful in making the efficient judgement regarding planning for costs and budgets to be fixed bythe organisational heads (El-Haj & et. al., 2014). According to the financial data the necessarydecisions can be made as to improve the economic condition of the business and helps themanagers in taking the corrective steps to enhance the internal or external environment of firm.The information can be fruitful for stakeholder if it has the relevant data regarding Predictive andConfirmatory value which helps in pre examine future outcomes and facilitate user of theaccounts to know or confirm the predictions or actual data. Faithful Representation:1
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